S. 37(1) : Business expenditure – Service tax paid to Government through not recovered allowable as business expenditure – Difference between invoiced amounts and foreign exchange rate fluctuation declared as income – Allowable as bad debt- Liquidated damages claimed whether revenue or capital – Dismissal of claim – Question is academic [ S.36(1)(vii), 36(2), 43B, 115JB, 245R ]

S. 35 : Scientific research – Amount spent by 100 Per Cent. Export Oriented Industrial undertaking – Entitle to deduction [ S.10A, 10B, 35 (2AB ) ]

S.32:Depreciation — Unabsorbed depreciation — Carry forward and set off — Amendment of section 32(2) W.E.F. 1-4-1997 – Limitation for carry forward and set off is eight Years .[ S.32 (2)]

S.32:Depreciation — Unabsorbed depreciation — Amendment of Section 32(2) by Finance Act, 2001 — Unabsorbed depreciation or part — Carry forward and set of permitted till final set-off [ S.32 (2) ]

S. 14A : Disallowance of expenditure – Exempt income -Recording of satisfaction is mandatory- Disallowance was deleted [ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income -Restriction off disallowance by Appellate Authorities to 0.5 Per Cent. of average investment income irrespective of whether such exempt income was received during relevant assessment year — Justified- Prior period income and expenses net off – Held to be justified [S.4, 145 , R.8D ]

S. 14A : Disallowance of expenditure – Exempt income -Recording of satisfaction is mandatory –[ R.8D ]

S. 14A : Disallowance of expenditure – Exempt income -Disallowance Cannot exceed exempt income .[ R.8D ]

S. 14A : Disallowance of expenditure – Exempt -No exempt income — Disallowance is not justified. [ R.8D ]

S. 10B: Export oriented undertakings – Entire sale proceeds must be received in convertible foreign exchange within stipulated time or should have opened bank account as per the provision of the Act – Part of sale proceeds adjusted against import of raw material — Not entitled to deduction in respect of such part [ S.10B(3)]